A Guide for Small Businesses to File Taxes


guide-for-small-businesses-to-file-taxes

Filing business taxes is something that many small businesses find intensely challenging. While large conglomerates set up entire teams of lawyers and accountants to get them the best deals on taxes, when the brunt of paying taxes hits small businesses, it can manifest into an anxiety-filled week at the office. So, if you are still working extra hours due to IRS woes, here is a step-wise guide on how to file business taxes for your small business.

Thoroughly Research Tax Regulations
Not all small businesses are subject to all the taxes required by either the federal government or the IRS for an industry. Even the exemptions are not uniform across an industry. Taxes are a subjective issue, and to deal with them, and avail the exemptions your business deserves, you need to dive in and research all about taxes in your field.

The most reliable sources of research are the entities in charge of taxations, like the IRS for federal income, and state secretary and/or department of revenue for business taxes. Further, local businesses’ taxes on income are also handled by the department of revenue for your state. And the local business registration office will handle all the details related to property and the rest of the taxes. So, make sure to gather all the information available on each of these portals.

One quick tip, small business owners are liable to pay self-employment taxes for social security or medicare on the profit. And only businesses earning less than or exactly $400 a year are exempt. You can calculate this based on the FICA tax (Social Security and Medicare) as applicable, when you file business taxes online.

    Also Read: How to Take the Stress Out of Tax Time

When do businesses have to file taxes? Know for sure
Taxes are as stressful as they are due to the deadlines and the high chances of missing these. So, you should absolutely be sure of the due dates. Mostly, small businesses share the income tax return due date with the personal tax return due dates. This is around April 15. In 2020, this was extended, given the pandemic situation. It is also subject to hostile weather conditions, area-wise, if any.

Further, you can request an extension of six months for tax returns. However, this never includes an extension on payments.

Maintain documentation and fill out forms
The business tax return form has to be filled duly by small businesses, including sole proprietors and private single-member LLCs. This requires a lot of thorough documentation.

Most businesses will need to file, Schedule SE forms for self-employment tax, and Schedule C forms for costs of goods, revenue, tax deductions etc. Small businesses need to provide verifiable information for any business expenses included as tax deductibles. It is important to note that entertainment expenses are not included as deductibles anymore.

    Also Read: Money Managing Tips for Small Businesses

Streamline filing with invoicing software
Maintaining structured reports can be cumbersome for most small businesses, and therefore, it is highly recommended that you use invoicing software that allows you to document taxes.

This is extremely helpful for filing Schedule C and Schedule SE forms, both of which require standardized information uniquely formatted. Also, since most invoicing software solutions enable users to add tax credits, and adjustments as applicable, it makes filing taxes a lot easier.

Sales tax forms in Schedule C require you to include receipts, so businesses using expense tracking software can leverage auto-generated e-receipts for the same.

File taxes through official channels
When it comes to the actual process of filing, you can do it physically by mail or file business taxes online free. Electronic filing of tax forms is also an option convenient for small businesses, as listed on Form 1040 by the IRS. However, do make a note of any additional fees when using tax preparation software.

With the right combination of software and operations, paying taxes on small businesses can become a cakewalk. Hope this guide serves you well for the next tax season.

Five Ways a Time-Tracking Software Can Help Grow Your Business


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Every business has a time sheet regime that they hope to adhere to. Most business are paying more than necessary due to exaggerated hours on time sheets. Time tracking software aims to correct undue timesheet entries. This is not to say that your employees are dishonest but it is a simple human tendency to make such errors. A lot of your employees and clients can over estimate the hours the put in, and there are a few underdogs who will under estimate. Either way, you are losing out on the accuracy.

1. Pay your Employees Correctly
2. Make Accurate Estimates
3. Manage Efficiently
4. Compare and Grow
5. How can you Improve?

Pay your Employees Correctly
Every employee has a somewhat correct estimate of how long a team project took. But compile all that and you’ll find a number that is way off the mark. You get a certain amount funding sanctioned for every project and managing that can be tricky if you don’t keep tabs on what your employees are doing. Using a time tracking software can fiercely enable your team with appropriate time logging. Time tracking software free of charge can allow your employees to take into account the work they have done. And get it billed correctly for their own salary and for your clients. This is an especially helpful feature for contractual employees.

Also Read: Benefits of time management software in the workplace

Make Accurate Estimates
What’s the point of working so hard to make good projects, and deliveries on time if you are not even getting paid for what you do. A time tracking software can empower you to make estimates true to the work that you put in as an organization. This is done by making AI backed analysis on your previous work logs and time sheets. You can compile any kind of project with the tasks and the works that go into completion and use a time tracking software to adjust your quotes and estimates. Further, you can link these estimates with your invoicing software for accurate billings.

Manage Efficiently
All things said and done, it is not the easiest job to supervise technically sophisticated employees. Most employees feel judged, and have a sense of privacy invasion every time a manager goes in for a check. You can avoid the unnecessary friction with even a free time tracking software. As it displays the status of the job right on the work desk as you login the next morning. So you have all the vital information you need to keep everyone in check through valuable metrics of tasks performed, hours put in, overall productivity score etc. And this can be managed on the individual level and bird’s eye view. The best part is, most time tracking software are cross platform so you can have a look right on the app.

Also Read: 5 Benefits of Time Tracking Software for Business –Link

Compare and Grow
If you are constantly missing deadlines, and feeling overwhelmed with projects and daily tasks. Obviously, you are doing something wrong. Sit back and analyze where you are going wrong. This is where a time tracking software can be of the utmost help to your organization. Time tracking software allow you to compare your performance over time, with powerful metrics. They allow you to strategize every project using the previous data and the new goal inputs. So you can measure on a project to project basis, the score of your performance.

How can you Improve?
This is the question most organizations ask themselves at the end of every quarter. The most amount of money invested in any business is in its strategic planning. But, time tracking is the cheapest, most strategically advanced tool you need to figure this out. Unlike a real time manager, a time tracking software is ruthless in its judgment of your performance. Get access vital reports, analytics, monitored timelines to strategize. Using a time tracking software, perform productivity audits and pin point the areas you are lagging.

5 Things You Did Not Know About Online Invoice Software


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Most businesses stress over invoicing. Often considered tedious, this process can be made easy with the use of technology. When you automate invoicing, you can save money on labors and avoid errors. The only people in the industry who claim to be free of the clutches of invoicing and bookkeeping seem to be those using an online invoicing software. This software has made huge strides and become a necessity for every business today. These are highly sophisticated platforms that help businesses generate bills for the services and products they have provided to their customers. Here are five things you didn’t know about this important tool.

Invoice Anytime Anywhere
Online invoice software use cloud-based servers to record and store your financial information. Every transaction is stored securely on a server. This allows business owners to access information from anywhere. You can use online invoicing software on both your mobile and desktop. From generating invoices to editing them, you can do everything with this platform. This includes claiming business expenses and making last-minute changes to bigger orders. You can access restrict features depending upon the employee. Therefore, you can also supervise your daily transactions as well.

    Also Read: 5 Common Questions About Online Invoice Software Answered

No Tax Season Drama
Invoicing software are made for small business owners and freelancers. Keeping in mind the problems that small businesses face during the tax season, these software have in-built algorithms. It creates a dashboard that allows you to view your tax deductions immediately. With this, you can record all your business transaction and audit your finances easily. This means, you no longer have to rush to the filing cabinet every tax season. All data entries are made with individual tax collection and submission for every client. These are done adhering to the laws and policies of the industry as well as the location.

Automated Invoicing
Small businesses use a lot of money due to incorrect and untimely billings. With an online invoicing software, you can change all that and make the process error-free. Using this software, you can simply link your payments and get notified every time a transaction is completed. You even get alerts when you miss a due date. This software allows you set-up automatic reminders for your clients, who have to pay their bills. With automated invoicing, you can find better estimates for projects. You can then use the accurate billing models to get the money you deserve.

    Also Read: Organize Your Business with Online Invoicing Software – Link

Cross Country Invoicing
Every country has its own business policies and billing laws. The traditional invoicing methods handicapped many businesses, stopping them from doing business internationally and even across states. With an online invoice software, you get access to multiple payment channels and gateways. All your invoices are redesigned according local policy and laws. So, you can do business with all clients.

Integrate with other Management Software
Businesses are used to having a dedicated bookkeeper, an HR, a manager. But what if you could combine all of the above and remove the back and forth communication? Imagine the time you will save. This is exactly what you can do with an online invoicing software. You can integrate invoice software with other tools that you use in your business. This will make the process efficient, lead to increased productivity.